The Covid-19 pandemic has really given employees pause as far as what they want and expect from a job. Working remotely has become a priority for many employees who want more time with family and –especially now with the rise in gas prices—to save on the cost of commuting.

Forget the Perks

In hospitality, that move to remote work outside of corporate offices is almost non-existent. Remote work isn’t an option for housekeepers, bartenders and front desk associates. Nevertheless, the fact that such a large portion of the overall workforce would rather work from home is also telling of the perks and benefits that many companies offer. That is, extras like free lunches, free snacks or free yoga at work really aren’t relevant anymore.

In the Forbes.com article “Perks Don’t Make for a Strong Company Culture,” author and President and CEO of Softway, an HR solutions provider, Mohammad Anwar argues that “the business world has conflated ‘perks and benefits’ with ‘good company culture,’ assuming that one leads to the other. However, in practice, this connection doesn’t exist.”

It’s definitely time for employers to rethink their benefits and perks. Perhaps it’s all the more important for the hospitality industry to rethink these offerings given the current state of the labor market.

Financial Coaches and 401K Enrollment

Given the high cost of gas, inflation and the fact that a surprising number of employees do not take advantage of 401K benefits, offering employees several sessions with a financial coach could be the differentiating factor for potential new hires.

To be clear, a financial coach is not a financial advisor. Unlike advisors, financial coaches are neither licensed, nor registered with the Financial Industry Regulatory Authority (FINRA). As such, they cannot legally recommend how clients should spend, invest or otherwise allocate their money.

Instead, financial coaches can educate clients on personal finance, giving them the tools they need to make sound financial decisions. That includes helping employees understand what a 401K is, why it’s worth taking advantage of –no matter how old the person is—and how it should factor in to their monthly cost of living.

Although 81% of full-time workers had access to 401K benefits in 2021, only 66 percent actually contributed to the plans, according to the U.S. Bureau of Labor Statistics. That low participation rate means there’s opportunity for employers to help staff members better understand that they’re leaving money on the table.

Which Employees Would Benefit?

More senior staff members as well as management might already use the services of a financial advisor who helps direct their long-term future investments. So they may not necessarily take advantage of financial coaching services. On the other hand, if they have pre-teen, teenage or college-aged children, they may ask if the benefit can be shared with family members.

Employees just starting out in their careers or those earning an hourly wage may find a financial coach helpful as far as learning how to create a budget, how to eliminate debt, how to create attainable financial goals and the importance of emergency funds.

Sourcing Potential Financial Coaches

Given that financial coaches are not required to have certifications or licenses, human resource departments might be hesitate about offering this benefit. After all, anyone could call themselves a financial coach and in fact, be a scam artist.

But there are reputable financial coaches out there. The Association for Financial Counseling and Planning Education offers training programs for financial coaches. So they are a good resource for finding respectable coaches.

Also, financial coaches typically charge a fee rather than rely on the more complex pay structures that financial advisors command. So hiring manages can negotiate rates based on volume; the number of employees who will have access to the service, how many sessions each employee will be allotted and how many employees you expect to actually take advantage of the benefit.

Moreover, you can also limit the scope of services that the financial coach offers employees. If you would rather they not participate in assisting staff to build an actual budget, but simply give them the know-how of how to build a budget independently, it’s certainly possible to have this included in a contract.

Regardless of how extensively a financial coach may be able to guide employees through the ins-and-outs of personal finance, it’s an employee benefit that has a lot more longevity than a free lunch.